Which of the following most accurately defines professional skepticism as it is used in auditing standards?
A) It either assumes management is honest or slightly dishonest, but neither all the time.
B) It neither assumes that management is dishonest nor assumes unquestioned honesty.
C) It assumes management is honest most of the time.
D) It assumes that management is dishonest in only rare instances.

Question

Quizplus · Accepted Answer

Professional skepticism means an auditor should neither assume that management is dishonest nor assume unquestioned honesty. Instead, the auditor should approach the audit with a questioning mindset and be alert to the possibility of material misstatements in the financial statements. This skepticism helps the auditor to maintain an objective and impartial view throughout the audit process.

Which of the Following Most Accurately Defines Professional Skepticism as It